SCM 455 MIDTERM STUDY GUIDE
*A spend category is - Answers -a convenient grouping of like-spend items
Group by inherent characteristics but also - Answers -Sourcing location (LCGs) or
process (ex: China sourcing)
Volume or value (ex: low priced items
Use (HVAC, maintenance, repair, other)
Complexity (silicon or Fab Test Equipment)
Corporate strategy (funnels down) - Answers -Define businesses
How acquire and allocate resources?
Business unit (BU) strategy - Answers -Specific business
Basis of competitive advantage (key)
Supply management (SM) strategy - Answers -Support desired business-level
strategies
Complement other functional areas (quality, engr, finance)
Spend Category strategy - Answers -How to define & manage supply of a particular
category to support the above strategies7
*Purpose (SM Situation Assessment) - Answers -Simply & comprehensively capture
current situation aspects (ie, Economy, Competition, Tariffs)
*Approach (SM Situation Assessment) - Answers -Assess environment affecting
strategy
External and internal scope
Frameworks for analysis (SM Situation Assessment) - Answers -SWOT, PEST, Porter's
5 Forces
Purpose (Analysis) - Answers -Investigate to identify structure, courses of action, and
potential challenges / opportunities
Inputs (Analysis) - Answers -Known factors and structures
Uncertainties - current and future
*Model the situation (need DATA!!) (Analysis) - Answers -Quantitative: Spreadsheet &
market research
Qualitative: Surveys, Themes, Scores
Output (Analysis) - Answers -Supply Mgmt direction
, Potential future contingencies ("what if")
Purpose (Strategic Plan / Actions) - Answers -Outline a course of action to achieve
goals while accounting for uncertainties
Basic Plan (Strategic Plan / Actions) - Answers -Timeline of activities & resources
Measurable objectives
Scenarios (Strategic Plan / Actions) - Answers -What-if storylines based on
uncertainties
Contingency plans to adapt if needed
Maintenance (Strategic Plan / Actions) - Answers -Governance to keep structure
Metrics (KPIs) to monitor & control
Purpose (Execution / Adaptation) - Answers -Execute Strategy while reacting to new
realities
Multiples tasks (Execution / Adaptation) - Answers -Manage stakeholders / decision
makers
Resource as needed
Monitor progress (Report Cards)
Change management (Execution / Adaptation) - Answers -Overcoming/understanding
resistance
Unintended consequences
*Category Strategy Process (5 Steps) - Answers -1. Build the Team
2. Research/Analysis
3. Strategy Development
4. Contract Negotiation
5. SRM
1. Build the Team - Answers --Goal: Develop a statement of work and plan
-Inputs and Tools: Project leader; other team members
-Outputs:Baseline data; project charter; work plan
2. Research/Analysis - Answers --Goal: Understand the supply market
-Inputs and Tools: Interviews; online research; conferences
-Outputs: Analyses on supply trends; pricing; portfolios; etc.
3. Strategy Development - Answers --Goal: Classify suppliers and define sourcing
approach
-Inputs and Tools: Market research; segmentation/portfolio matrix; forecasted spend
-Outputs: Category Strategy Matrix (how to design supply structure) Supplier Eval. Tool
(enable and map strategic alignment)
*A spend category is - Answers -a convenient grouping of like-spend items
Group by inherent characteristics but also - Answers -Sourcing location (LCGs) or
process (ex: China sourcing)
Volume or value (ex: low priced items
Use (HVAC, maintenance, repair, other)
Complexity (silicon or Fab Test Equipment)
Corporate strategy (funnels down) - Answers -Define businesses
How acquire and allocate resources?
Business unit (BU) strategy - Answers -Specific business
Basis of competitive advantage (key)
Supply management (SM) strategy - Answers -Support desired business-level
strategies
Complement other functional areas (quality, engr, finance)
Spend Category strategy - Answers -How to define & manage supply of a particular
category to support the above strategies7
*Purpose (SM Situation Assessment) - Answers -Simply & comprehensively capture
current situation aspects (ie, Economy, Competition, Tariffs)
*Approach (SM Situation Assessment) - Answers -Assess environment affecting
strategy
External and internal scope
Frameworks for analysis (SM Situation Assessment) - Answers -SWOT, PEST, Porter's
5 Forces
Purpose (Analysis) - Answers -Investigate to identify structure, courses of action, and
potential challenges / opportunities
Inputs (Analysis) - Answers -Known factors and structures
Uncertainties - current and future
*Model the situation (need DATA!!) (Analysis) - Answers -Quantitative: Spreadsheet &
market research
Qualitative: Surveys, Themes, Scores
Output (Analysis) - Answers -Supply Mgmt direction
, Potential future contingencies ("what if")
Purpose (Strategic Plan / Actions) - Answers -Outline a course of action to achieve
goals while accounting for uncertainties
Basic Plan (Strategic Plan / Actions) - Answers -Timeline of activities & resources
Measurable objectives
Scenarios (Strategic Plan / Actions) - Answers -What-if storylines based on
uncertainties
Contingency plans to adapt if needed
Maintenance (Strategic Plan / Actions) - Answers -Governance to keep structure
Metrics (KPIs) to monitor & control
Purpose (Execution / Adaptation) - Answers -Execute Strategy while reacting to new
realities
Multiples tasks (Execution / Adaptation) - Answers -Manage stakeholders / decision
makers
Resource as needed
Monitor progress (Report Cards)
Change management (Execution / Adaptation) - Answers -Overcoming/understanding
resistance
Unintended consequences
*Category Strategy Process (5 Steps) - Answers -1. Build the Team
2. Research/Analysis
3. Strategy Development
4. Contract Negotiation
5. SRM
1. Build the Team - Answers --Goal: Develop a statement of work and plan
-Inputs and Tools: Project leader; other team members
-Outputs:Baseline data; project charter; work plan
2. Research/Analysis - Answers --Goal: Understand the supply market
-Inputs and Tools: Interviews; online research; conferences
-Outputs: Analyses on supply trends; pricing; portfolios; etc.
3. Strategy Development - Answers --Goal: Classify suppliers and define sourcing
approach
-Inputs and Tools: Market research; segmentation/portfolio matrix; forecasted spend
-Outputs: Category Strategy Matrix (how to design supply structure) Supplier Eval. Tool
(enable and map strategic alignment)
